Some naysayers and the real conspiracy theorists amongst the populace think accepting VC is tantamount to a “Faustian bargain,” and that venture capitalists are wolves in sheep’s clothing. As in any industry, there will be some good venture capitalists and there will be some bad ones.
But nevertheless, according to this school of thought, after accepting VC money, rookie entrepreneurs never get to carry out their original intention for the company, and instead get distracted to please their new masters, who have their own ulterior motives to take control of the company without its founder.
Even venture capitalists will readily agree that venture capital is not good for everyone. Albert Wenger of venture-firm, Union Square Ventures, has said ““Most businesses are better off without venture capital. It makes sense in only a few instances. When it’s not a good fit, it’s bad for the recipient and the investor. It completely changes the dynamic of what you’re doing.”